Monday, April 20, 2015

EMV is a security framework that defines the payment interaction at the physical, electrical, data and application levels between chip cards and payment devices. These interactions are often referred to as EMV Level 1 and 2 requirements. EMVCo was created by the payment networks to be a neutral party in making this standard framework.How Does It Work?

Smart cards are embedded with a chip that is encrypted with data. EMV-enabled devices have the ability to read data stored on a chip within the card. During the transaction authorization process, strong cryptographic functions are used to validate the authenticity of the card and cardholder.

Best of all, when a customer pays using an EMV-enabled device, the device is instantly identified as an authentic, approved payment instrument through a process called dynamic authentication. When used with a PIN, the chip proves that the customer is paying with his or her own card.

By using chips as an active part of the payment transaction, EMV cards and devices help prevent credit card fraud from stolen account numbers and cloned payment cards.

Solutions

The complexity of migrating to EMV chip-card standards can pose significant challenges for acquirers and merchants. ePay Management is currently offering Verifone EMV-compliant solutions for all counter top environments. Verifone provides an unmatched line of EMV-compliant hardware and software - as well as training and support - to deliver complete solutions for meeting migration plans. In addition, we are working closely with our partners to ensure that all payment applications designed to run on these devices will be EMV-certified.

Most importantly, while EMV limits the exposure of payment transactions to fraud and misuse, cardholder information is still transmitted in the clear during an EMV transaction. Verifone's VeriShield Total Protect, Secured by RSA, applies sophisticated encryption and tokenization to secure cardholder information, from insertion to processing and back.

What About Mobile Solutions

The availability of EMV-compliant devices will vary depending on the payment gateway being used. The different gateways are certifying devices ranging from MagStripe and Smart Card audio jack readers, Bluetooth payment terminals and PINPads.

ePay Makes Migrating to EMV Smooth

The easiest way to migrate to EMV is to rely on ePay management. Our experts save additional time and labor costs related to payment estate assessment by determining which EMV-compliant hardware and software solutions best optimize business needs and meet EMV migration initiatives.

By working with ePay, enjoy the peace of mind of being equipped with everything needed to meet migration plan deadlines and avoid potentially significant risks associated with solutions that are not EMV-compliant.

Fraud Liability

Today, if an in-store transaction is conducted using a counterfeit, stolen or otherwise compromised card, consumer losses from that transaction fall back on the payment processor or issuing bank, depending on the card's terms and conditions.

After an Oct. 1, 2015, deadline created by major U.S. credit card issuers MasterCard, Visa, Discover and American Express, the liability for card-present fraud will shift to whichever party is the least EMV-compliant in a fraudulent transaction.

Consider the example of a financial institution that issues a chip card used at a merchant that has not changed its system to accept chip technology. This allows a counterfeit card to be successfully used.

"The cost of the fraud will fall back on the merchant," Ferenczi says.

The major credit card issuers each have published detailed schedules about the upcoming shift in liability. The change is intended to help bring the entire payment industry on board with EMV by encouraging compliance to avoid liability costs.

Any parties not EMV-ready by October 2015 could face much higher costs in the event of a large data breach.

Automated fuel dispensers will have until 2017 to make the shift to EMV. Until then, they will follow existing fraud liability rulings.

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About Me

Mr. David A. Wilson is the Founder and CEO of ePay Management, LLC focusing on program development and partner relationships in regards to all forms of electronic payment processing. Previously, he was the Senior Client Relations Manager for POS Systems, Inc. since February of 1992, responsible for all operations and activities related to the company’s banking clientele within the Merchant Services businesses. Mr. Wilson has had a distinguished career of 18 years experience in financial services. As a seasoned executive in financial services, with a clear vision for the future and an understanding of how to manage the changes necessary to reach it, Mr. Wilson is well suited to lead ePay Management’s expansion into emerging markets.
Mr. Wilson is an active fundraiser for the City Of Hope and Banner Health Cardon Children’s Medical Center.
Mr. Wilson attended the Herberger Institute for Design and the Arts at Arizona State University from 1984 to 1987 before registering for the W.P Carey School of Business at ASU and attending until 1989 towards earning a B.S. degree in Business Management.